Semarang-Cirebon gas pipeline hanging in the balance

The fate of the gas pipeline project linking Semarang to Cirebon in Central Java is hanging in the balance due to uncertainty over gas supplies.

 

The pipeline project, which is owned by PT Rekayasa Indonesia, is expected to get gas supplies from East Kalimantan through the East Kalimantan-Central Java pipeline to be built PT Bakrie & Brothers.

However, the East Kalimantan-Central Java pipeline project remains in uncertainty as Bakrie & Brothers has yet to secure gas supplies from gas producers in the province.  

 

Rekayasa Indonesia's president director Triharyo Soesilo disclosed that oil and gas downstream regulator BPH MIGAS had instructed that the construction of the two pipeline projects should be "synchronized".

 

“Unless Kaltim (East Kalimantan-Central Java pipeline project) is materialized, we shall realize our project,” he said in Jakarta on Thursday.

 

The building of the 220-km Semarang-Cirebon pipeline will cost around US$169 million. Rekaya Indonesia has secured lands but had yet to secure financing for the project, Triharyo said. (godang)